April 2003

Lawyers' Fund for Client Protection

The Lawyers' Fund for Client Protection Committee meets quarterly to review applications for gifts from the fund. The committee is authorized to make gifts of up to $10,000 to eligible applicants. On applications for more than $10,000, the committee makes recommendations to the Board of Governors, who are the fund's trustees. At their November 22, 2002, meeting, the committee took the following action:

C. Alan Grider (WSBA No. 16927, Clarkston; disbarred): Grider was employed to probate an estate, the only asset of which was a condemned house that sold for $15,000. The court approved disbursal of the proceeds, which was to include payment of $7,945 to a funeral home and $1,000 to the personal representative. Grider failed to make those payments or to account for the funds. The committee approved payments of those amounts.

Paul H. King (WSBA No. 7370, Seattle; suspended): The applicants hired King to represent them in a wage claim against their former employer on a 40 percent contingent-fee basis. After mediation, the employer offered to settle for $14,000, to which the applicants agreed. Without his clients' knowledge or consent, King demanded settlement of $17,500. A few days later, King's office advised the employer that they would settle for the $14,000 offer.

After receipt of the $14,000 settlement agreement, King advised the applicants to proceed to trial. The applicants again told King to accept the settlement and they left with a copy of the settlement agreement. King the told employer that the applicants wanted to proceed to trial. However, the applicants delivered a signed settlement agreement to the employer. King then demanded that the applicants change their fee agreement with him, to pay King 50 percent of the total settlement. They refused.

When King's office received the $14,000 settlement, he advised the applicants that he would hold the settlement funds in trust until the "fee dispute" was resolved. He sent them a disbursal statement showing fee payment to himself of $7,000; payment to the applicants of approximately $3,500; and that the balance would be held in trust as disputed attorney's fees. Shortly thereafter, the applicants signed an agreement to pay King $6,918 in fees plus $788 in costs, because they needed the funds King was withholding.

In his stipulation to suspension, King stipulated that the fee he was entitled to be paid from the settlement funds was 40 percent ($5,600) instead of the 50 percent he charged ($6,918). He stipulated to pay the difference ($1,318) to the applicants. On September 4, 2002, the WSBA received an unsigned check on behalf of King made payable to the applicants in the amount of $1,318. King has not paid restitution. The committee approved payment of $1,318 to the applicants.

Robert H. Lewis (WSBA No. 23635, Tacoma; suspended): Lewis had worked as a contract attorney for another lawyer who moved to Brazil and sold his practice to Lewis. Shortly thereafter, Lewis abandoned the practice.

The applicant paid Lewis $800 to represent her on a criminal charge; however, Lewis failed to appear at the arraignment. The applicant wrote to Lewis discharging him as her lawyer and requesting an $800 refund. Lewis sent her a handwritten note that read: "I will be forward to you a complete refund as soon as possible" [sic]. The applicant received no refund. The committee approved payment of $800.
The applicant paid Lewis $500 for representation in her divorce; however, Lewis did no work on the case. The committee approved payment of $500.
The applicant paid Lewis $600 for representation on a DUI charge; however, Lewis did no work on his case. The applicant was unable to reach Lewis, and finally discharged him. Lewis wrote to the applicant, enclosing a payment and stating: "I will continue to make payments until the agreed upon amount is paid." The applicant returned the check to Lewis, saying that he had never accepted a "partial payment" plan, and asking for refund of the full $600. He received no response from Lewis. The committee approved payment of $600.
The applicant paid Lewis $375 for representation in an uncontested divorce. He says he heard nothing further after he paid Lewis. When another lawyer took over his case after Lewis disappeared, the only items in the applicant's file were his name, address and phone number. The committee approved payment of $375.

Robert C. Lyons (WSBA No. 22275, Spanaway; disbarred): Lyons was disbarred based on allegations of sexual misconduct, as well as conversion of client funds and failure to return unearned fees.

The applicant paid Lyons $1,000 for representation in a child-support proceeding. Lyons said he would be in contact with her, but she never heard from him again. When she tried to contact him at his office, she was told he no longer worked there. A child-support hearing was set and Lyons failed to appear. Lyons never returned the applicant's $1,000. The committee approved payment of $1,000.
The applicant paid Lyons $750 for a dissolution modification. When the applicant called Lyons, for a while "he made a lot of excuses," and then she could not reach him. The committee approved payment of $750.

Stephen L. Palmberg (WSBA No. 3178, Grand Coulee; disbarred): The applicant paid Palmberg $1,350 to defend him against a civil claim two weeks before Palmberg was suspended for nonpayment of his annual license fee. This fee was to cover up to ten-and-a-half hours of legal services. After the applicant paid Palmberg, he was unable to reach him by phone or at his office. On the day the matter was set for hearing, Palmberg failed to appear and refused to return the fee or the file. The committee approved payment of $1,350.

Other business: The committee reviewed 16 additional applications that were denied for lack of evidence of dishonest conduct, or as fee disputes or malpractice claims. Two applications were dismissed, as restitution had been made, and one was continued to the next meeting.

Restitution: The fund seeks restitution from the lawyers who cause payments from the fund. Because in most cases those lawyers have no assets, the chief avenue of restitution is through court-ordered restitution in criminal cases. Prosecuting attorneys cooperate with the fund in getting the fund listed in restitution orders. As of November 2002, seven lawyers were making regular restitution payments to the fund.

Thank you's: The purpose of the Lawyers' Fund for Client Protection is to assist persons who have been the victims of dishonest lawyers. Although the fund cannot fully compensate a person for the harm done by a dishonest lawyer, the fund receives notes of appreciation to the lawyers of Washington state:

"On behalf of my family, we would like to extend our sincerest thank you for all the help you and your associates extended to us! Thank you."
"I want to take a moment to thank you for all of your help. The WSBA's response to [my clients'] plight has done much to wipe away the hurt caused by [the respondent lawyer]. The Lawyers' Fund is a program that has its obvious financial benefits, but certainly as important, it can do much to help injured people wipe the slate clean. So it is for [my clients], and I know that they could not be more grateful."
"Thank you � this helped a lot."

The committee chair is Pullman attorney Scott Bergstedt. WSBA General Counsel Robert Welden is staff liaison to the committee.